JulieCo
New Member

Business & farm

The next sentence of Pub 535 is "If you own an interest in a
pass-through entity, the trade or business determination is made at that entity's level."  For the QBI deduction, the concern is about whether the income is from a trade or business and not whether you are a passive or active participant in the business.  For instance, not all rental income is considered  "trade or business" because of the typical passive nature of the business activity.